umpiredice
I see your computer has been slowing down for a while what Hobo says is right you need more space on your C: drive. In the future I would suggest any programs you download put them on you D: drive I would also suggest that you move any programs you can to that drive.
Also you need to see how many applications you have running in the background. You can do this by pressing and holding Ctrl+Alt then pressing Delete. This should open your Task Manager you will be able to see what programs are running in the background.
You can also see how much memory you are using with 128Mb of memory you do not have allot to spare LimeWire will use about 50Mb itself so that only leaves 70Mb any applications running in the background will be using memory also.
You probably need to derangement your hard drive 98 was notorious for fragmenting. Also I do not see where you are running any kind of spy ware detection tools. You should probably do a spy ware scan and clean any spy ware out. If you download a spy ware detector set it to run only when you want it to. You do not want it running in the background it will only use memory and I do not think you have any to spare.
You can get Ad-Aware SE Personal at the link below it is free or at least it use to be. And it works pretty good.
http://www.download.com/
Hope this helps get your performance back to what it use to be if you could get another 256Mb it would help you allot.